COULD buyers be finally getting off the fence? It seems so based on the strong selling of new homes last weekend. In Dublin 15, the first phase of houses at Manor Park Homes' Barnwell development at Hansfield attracted queues, with starting prices for three-bed houses pitched just under the €300,000 mark.
Developer Joe Moran bucked the trend here by selling around 70 houses within hours, and releasing a second phase - at the same prices - to bring total sales over the weekend to 122. Modest two-bed houses traded briskly at €274,950, making them cheaper than most of the city's one-bed apartments.
Meanwhile over in Leopardstown, 41 apartments were sold at reduced prices from €315,000 at The Gallops, Michael Cotter's long running scheme - now in its 18th year. Two-bed apartments went on the market at lower prices starting from €395,000, cheaper than much of the southside competition. Savills HOK was the agent in both cases and is keen to blow its trumpet, having read the market right. The sales have brought a bit of vigour to the new homes market after a dreadful few months when sales had virtually stopped. With big name builders like these reducing prices, others are likely to follow suit and, with the ECB likely to cut interest rates in the coming months, the Hansfield effect might snowball.
However, not all developers are ready to drop prices. Some will simply shut up sites and batten down the hatches in the belief that supply will eventually dry up and there will be a shortage next year, or the year after. They are banking on getting their original asking prices, even if it means closing up completed buildings, or renting out apartments rather than selling them. Rents, which were rising sharply through 2007, are now levelling off because of an oversupply in many parts of the suburbs so it may no longer be an option for the builders to pay stamp duty and finish out completed units for rentals. Despite the slowdown, some builders will not be going down that road, believing that once the first or second interest rate cut kicks in they will duly offload completed units. All the indications are, however, that it will be the buyer who calls the shots for most of this year.
